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1 Making Messages Culture Specific


Cultural misunderstanding can raise havoc on the best business plans. Even though it is basic communication tool of advertising in foreign lands advertisers often fail to develop even a basic understanding of a foreign, much less master the linguistic nuances that reveal unspoken attitudes and information. Even a good interpreter does not solve the problem. Linguistic communication, no matter how imprecise is explicit, but much of the business communication depends on implicit messages not verbalised. In some cultures, messages are explicit, the words carry most of the information. In other cultures less information is contained in the verbal part of the message since more lies in the context. The advertiser must achieve expert communication that is gained by a thorough understanding of the language for making messages culture specific. Advertising copywriters should be concerned less with the obvious differences between languages and more with the idiomatic meanings expressed.eg Tamboo means a roadside Inn in Peru, Equador,Columbia and Bogota. In Argentina and Uruguay it means a dairy farm and in Chile it means a brothel. A dictionary translation is not the same as an idiomatic interpretation and will not suffice. In USA a very successful advertising slogan it takes a tough man to make a tender chicken came out in Spanish as it takes a virile man to make a chicken affectionate Carelessly translated message not only lose its intended meaning but can suggest something very different obscene, offensive or just plain ridiculous. Advertisers should never take it for granted that they are communicating effectively in another language. What is needed is a cultural translation. Translating a message and getting the right meaning is a problem for all cultures. Eg in Acapulco, a hotel had the following message to convey quality control all the water in the hotel has been personally passed by the manager. Advertisers have to realise that different cultures often seek the same value or benefit from the primary function of a product eg a car to take you from A to B, a camera to take pictures or a wrist to tell time. But what is important is that other features and psychological attributes of the items can have significant differences. Eg a camera in America can be taken with easy foolproof operation. In Germany and Japan the camera must take excellent pictures but it must also be state of the art in design. In Africa the concept of taking pictures must be sold .In all the three excellent pictures as it is the primary function of a camera but the additional utility or satisfaction from a camera differs among cultures. Thus many companies follow a strategy of pattern advertising, a global advertising strategy with standardized basic message allowing some degree of modification to meet local situations. The popular saying i8s think globally, act locally. In this way some economies of standardization can be realized while specific cultural differences are accommodated. Lee Strauss & Co changed from all localized ads to pattern advertising where broad outlines of the campaign are given worldwide but the details are not. Quality and Levi American roots are given worldwide but in each country different approaches express these two points. In Japan, the Blue Diamond brand of almonds was an unknown commodity until it launched its campaign of exotic new almond- the basic products that catered to local tastes. Television ads featured educational messages on how to use almonds in cooking, their nutritional value, the versatility of almonds as a snack and the California mystique and health benefits of almonds. As a result, Japan is now the Associations largest importer of almonds

2 No generalised recommendation can be made about whether to adapt or standardize international advertising. It depends on the products, the culture, the usage pattern and so on. Advertising efforts are moving towards a centralized position, standardized where possible and adapted where necessary. Nescafe has a global brand but advertising messages and formulations vary to suit cultural differences. In Japan and UK tea is popular, in France, Germany & Brazil ground coffee is preferred. Even in this situation there some standardization. All ads have a common emotional link whatever good coffee means to you and however you like to serve it, Nescafe has a coffee for you Markets are constantly changing and are in the process of becoming more alike but the world is far from being a homogenous market with common needs and wants for all products. McDonalds worldwide is well known for the high degree of respect for the local customs and cultures. It has developed a menu especially for India with vegetarian selections to suit Indian tasted and preferences. It has introduced vegetarian and nonvegetarian items with local flavours that have appealed to the Indian palate.
Compiled by Anita Mandrekar

3 CURRENT GLOBAL TRENDS


Developing markets all over the world are experiencing rapid industrialization, creating growing industrial and consumer markets, economic growth and new opportunities for foreign investment. In China, few days before the new year the foreign outlets are jammed with bargain hunters pushing carts loaded high with food, kitchen appliances and clothing. The shoppers here are Chinas noveau rich. Mega stores have opened in a number of Chinese cities. The Chinese market may be difficult to tap and may not be profitable for short business firms as they are learning about the ways and tastes of the east, which is so different from the west. Extended families are spending money on kids, a common form of conspicuous consumption in the developing world. Even in China the spending power of youth is not to be discounted. China and other emerging markets throughout the world will account for 75% of the worlds total growth. The transition from socialist to market driven economies, the liberalization of trade and investment policies in developing countries, the transfer of public sector enterprises and the rapid development of regional alliances are changing the way countries will trade and prosper. Decades ago larger parts of the developing world were hostile toward foreign investment and imposed severe regulatory barriers to foreign trade. Today it is different with the collapse of the Marxist- the socialist economic setup and the spectacular success of Taiwan, South Korea, Singapore and other Asian countries. It has become apparent that the path to prosperity was open and direct investment. China, Taiwan, HongKong, South Korea, Poland, Argentina, Brazil, Mexico and India are some countries undergoing impressive changes in their economies and emerging as vast markets. In these countries there is over expanding and changing demand for goods and services, markets are dynamic and developing entities are reflecting the changing life style of culture. A pattern of economic growth and global trade appears to be emerging. It consists of three international market region that comprise major trading blocks. Europe, Asia, America, Indonesia, Malaysia, Thailand and the Philippines are beginning to chase the lenders. These are the global trading blocks of the future. India now has the look and feel of the next China, but it continues to have problems. While it has overthrown the restrictions of earlier years it is not moving towards reforms and open markets with the same degree of vigour found in other emerging markets. Resistance to change comes from bureaucrats, farmers, union members as well as some industrialists who have lived behind protective barriers that excluded competition. India is second in size only to China and both contain enormous low- cost labour. India ghas a large industrial base and is developing as a centre for computer software. These give India enormous potential. Indias weak infrastructure makes many aspects of doing business difficult and costly but the Indian government is addressing these problems. Private sector have entry power generation, oil and gas exploration, telecommunications, civil aviation, cellular phones. India still presents a difficult business environment. Widespread corruption and a deeply ingrained system of bribery make every transaction complicated and expensive. This corruption is persuasive, systematic, running from the bottom to top of the political order.

4 Cross Cultural Advertising


A portion of the consumers exposure to different cultures tend to come about through consumers own initiatives, their travel, working in foreign countries, immigration to a different country, movies, theatre, art and exposure to unfamiliar and different products. The other major category of cultural exposure is often undertaken by marketers and advertisers seeking To expand their markets by in a different country possessing a different cultural view. In this context advertisers in foreign provide a form of cultural transfer Cross- cultural advertising is a responsible effort to borrow those cultural ways seen as helpful for the better solutions to a societys particular problem. It is important for an advertiser to learn about the different cultures world wide if a brand has to be sold in a foreign country.. There are two types of knowledge, factual knowledge about culture which is obvious and must be learnt. Different meanings of colour, different tastes and other traits indigenous to a culture are facts that an advertiser can anticipate, study and absorb. The other is interpretative knowledge, an ability to understand and fully appreciate the meanings of different cultural traits and patterns eg the meaning of time, attitudes towards other people and certain objects, the understanding of ones role in the society can differ considerably from one culture to another and require more than factual knowledge. Factual knowledge as a fact about culture assumes additional significance and has to be interpreted within the context of the culture eg Mexico is 98% Roman Catholic. However it is equally important to remember that in Spain or Italy or any other country Catholicism is practiced in a slightly different manner. Another conflict arises if one possesses factual knowledge but little interpretative knowledge. Taiwanese emphasise the collective while the westerners emphasise the individual. Emphasis on the collective results in a close-knit, supportive teams and creates a mind set which does not work with the western client. The problem is that when the local staff acts humble and cautious the westerner perceives the humility as ignorance or lack of knowledge. An example of a good cross cultural advertising is the Idea ad which has a Sumo wrestler buying vegetables. That was a fantastic way of advertising a foreign product in a country. Idea wanted to go local in India. For that they showed a sumo wrestler buying vegetables in a typically Indian vegetable market. He is talking to the grocer and finding out the rates, which a very typical Indian way of buying vegetables and how the rates are brought down.

Multinational Competition and its impact on Indian Brands/ Indian Business


With the entry of multinationals companies Indian brands now had to compete with the array of MNC brands. theMNC brands enjoyed several strengths: -money that support brand building over several years -superior marketing/brand building skills -ability to adapt to the local conditions -backup of superior technology -experience gained from operations in several markets around the globe. The Indian brands had the advantage of operating in the home ground, they were culturally closer to the consumer and had a well entrenched distribution channel and a reasonable amount of brand patronage and loyalty. However the MNCs were able to easily nullify all such advantages enjoyed by Indian brands. Indian brands had the the advantage of the lower cost of production and therefore they could compete on price. But the trouble was that these brands were often perceived to be of a lower quality compared to the multinational brands. The MNCs were able to narrow the cost/price differential and also redefine the quality standards and improve the price-performance equation of their brands relative to the Indian brands. The Indian consumer has no particular affinity for Indian brands. The average Indian consumer does not seem to be guided by the be Indian- buy Indian slogan. Indian brands were affected in multiple ways: -loss of volumes and market shares -squeeze on profit margins -the compulsion to allocate additional resources for the brand, often beyond the capacity of the firm -losing the race finally to the foreign brand -takeover of the brand by the MNC if the brand managed to do well. The onslaught of the foreign brands is most visible in the colour television segment. While ther collective share of BPL, Videocon, Onida and other desi brands has dropped, the MNC brands have grown. Some Indian players have been forced to do contract manufacturing for MNC brands to make use of their idle production capacity. In the Audio segment the MNC brands like Aiwa. Sony and Panasonic have been gaining steadily and Indian brands like BPL are now going further down in their market shares. In shampoos too MNC brands have been dominating the Indian market. Sunsilk, Clinic, Pantene. Pantene holds the number one position among shampoos internationally It has been an unequal battle between players of unequal strength. It was unequal due to: - lack of technology clout - capital inadequacy - lack of economy of scale - lack of product clout and brand power The MNCs with their global capacities could feed the Indian market on the basis of marginal costing. Against this the Indian companies had very unviable production capacities and cost,. The new all pervasive competition is the major challenge facing business firms in India in the liberalised era. The ground has become free for all. There is competition from imported products, competition from substitute products, from new sources of supplies. There is competition from the technology angle. Many industries turned to exports due to domestic competition. Most Indian firms find global marketing a difficult game due to; - lack of global size - low productivity - low quality

lack of brand power 6

ADVERTISING AND CHILDREN


The world of children has changed a great deal over the last decade; Kids are no longer Passive consumers of brands that they once used to be, but are active seekers and influencers for a whole range of products affecting their lives. While this is true for products like chocolates, biscuits, ice-creams, it is also true for a whole other range of high end consumables like packaged food, computers and believe it or not, cars The new generation of youngsters sis an avid consumer of mass media, especially television. They are increasingly vocal and influential when it comes to brand choice and brand purchase. The influence spreads to categories which may not be directly used by kids (refrigerators, mobile phones, (salt ads, spices ) advertisers are making their pitches to more and more younger audiences. catch them young seem to be the motto of the day. Children learn how an item fits the lifestyle from cartoons, soap operas and serials. Children Develop an unrealistic idea of how people live. Children are getting older beyond their years. Todays generation is more computer literate and advertising literate. Children are the now generation Children respond more positively to messages communicated visually, rather than voice message. Visual action is closer to their own play experience where actions speak louder than words. One of the most controversial topics advertisers must deal with is the issue of advertising to children Studies have also shown that tv is an important source of information for children about products . Critics argue that children are especially vulnerable to advertising because they lack the experience and knowledge to understand and evaluate critically the purpose of persuasive advertising appeals. They also feel that pre-school children cannot differentiate between commercials and programmes and cannot distinguish between reality and fantasy. Critics charge that advertising to children is inherently unfair and deceptive and should be banned. On the other hand are those that advertising is a part of life and children must learn to deal with it in consumer socialization process of acquiring the skills needed to function in the marketplace. Some feel that parents should be involved in helping children interpret advertising and can refuse to purchase products they believe are undesirable for their children. Some countries have strict guidelines for advertising to children The issues of advertising directed to children has been receiving greater attention recently. There is also a growing concern over how advertisers are using the internet to communicate with and sell to children Advertising to children will remain a controversial topic. Some groups feel that government is responsible for protecting children from the potentially harmful effects of advertising while others argue that parents are ultimately responsible for doing so. It is important to many companies to communicate directly with children. However only by being sensitive to the naivete of children as consumers will they be able to do so freely and avoid the conflict with those who believe children should be protected from advertising. One group feels that banning tv ads will deny advertisers the right of free speech to communicate with other audience members. They also feel that no authority has the professional competence to serve as the national nanny deciding what children should be exposed to. They say children are aware that fruits and vegetables are more nutritious than the highly sugared foods. There have been attempts to ban sugared food products directed to or seen by children with nutritional and or health disclosures It is reported that children between the ages of two and eleven spend about 25 hours per week watching television and see approx 20,000 ads per year and 7,000 of these ads are for sugared products.

7 Realising that children are imaginative and that make-believe play constitutes and important part of the growing-up process, advertisers should exercise care not to exploit the imaginative quality of children. Unreasonable expectation of product quality or performance should not be stimulated either directly or indirectly by advertising Recognising that advertising may play an important part in educating the child, information should be communicated in a truthful and accurate manner with full recognition by the advertiser that the child may learn practices from advertising that can affect his or her health and well-being The controversy on ads aimed at children has generated an ongoing steam of research on the effects of childrens advertising. The effect of advertising can be both positive as well as negative . All toothpaste ads like Colgate, Pepsodent etc inculcate a good habit of brushing the teeth in the morning and at night. They create awareness among the children regarding the ill effects of germs, weak gums etc. The Raymond ads shows depressed school student wishing good bye to their principal. Out of respect and love for their principle they buy him a Raymond suit piece. It influences the kids to give the teacher the respect they deserve and love them for the knowledge they bestow on them. The Thums up ad had a man standing at a cliff and performing ;bungee jumping A kid after watching this ad attempted a similar feat and jumped from the fifth floor of a building only to fall to his death. Kwality Walls came out with a series of double meaning ads with lines like what on your stick? it showed a group of girls ragging a few guys, where an extremely rude and vulgar behaviour was displayed with an all the more vulgar line the big F. Several parents complained Clinic Shampoo ad featured a girl child who is embarrassed because of her extremely lifeless hair. Is this the age when a kid should be worried about her looks and hair? Such ads make children grow older beyond their years and thus induce wrong attitudes and beliefs in them The LG television ad showed a kid not going back home from school and standing outside a TV show room just to watch TV because at home his mother does not allow him to do the same. The ad said that kids could watch TV for unlimited hours without spoiling their eyesight. This influenced the child in a negative way. The Lizol ad shows a child taking a biscuit and takes it all around the house, even the dirty nooks and corners of the house, even the toilet. After this he takes the biscuit and puts it the plate from which he had taken it. Although many influences affect a childs personal and social development, it remains the prime responsibility of the parent to provide guidance for children. Advertisers should contribute to this parent-child relationship in a constructive manner.
Compiled by Anita Mandrekar

8 Advertising and Women


The role of the women in our society has changed. The traditional role cannot be accepted now. Women are playing a diversified role in the socio-economic context in our society. Women are emerging as a powerful influence group. The portrayal of women in advertising is an issue that has received a great deal of attention through the years. Advertising has been criticised for stereotyping women and failing to recognize the changing role of women in our society. Critics have argued that advertising of ten depicts women as decorative objects or sexually provocative figures. Gender stereotyping has varied little over time. Women have been shown as lacking intelligence and credibility. They are shown as dependent on men and do make decision on their own Advertisings portrayal of gender roles was a representation of the long-existing unequal relationship of dominance and subservience between the two sexes. The axe ad shows that a body spray can make the sexual availability of women easy. Gender stereotyping is also prevalent in ads aimed at children. Boys are shown as being more knowledgeable, active, aggressive and instrumental than girls. Dominance and control are associated more with boys than girls Feminist argue that advertising that portrays women as sex objects contributes to violence against women. Some feel that image of the educated woman is type cast as arrogant, insensitive, self-centered, Wily or the economically independent woman shown as domineering, hard, ruthless and the cause of all the suffering around her. While sexism and stereotyping still exist, advertisings portrayal of women is improving in many areas. Many advertisers have begun to recognize the importance of portraying women realistically. He increase in the number of working women has resulted not only in women having more influence in family decision making but also in more single-female households, which mean more independent purchasers Women have now crossed the boundary from the domestic sphere to the professional arena, expectations and representations of women have changed as well. Many ads are now depicting women in a diversity of roles that reflect their changing place in society. In many ads, the stereotyping traits attributed to women have shifted from weak and dependent to strong and autonomous. The advent of woman reporters and the presence of some senior women journalists in positions of responsibility have made a significant difference to the coverage of womens issues in the press . While sports and athletics sported more men than women in the past. However, real achievers like Sania Mirza have changed all that. You see a cricketer like Mahendra Dhoni almost as often as you see Mirza..

9 Advertising and youth


Youth is seen as the most global segment as it is felt they show amazing similarities in taste, interest, language and attitude, music, fashion, film, video games & technology for global culture. The youth in USA< Latin America, Europe, Asia, Australia are surfing the net, talking on their cell phones, playing their video games, watching MTV, drinking Coke and Pepsi Young consumers around the world are spending, substantial money Global youth is very ripe and growing market as there are over 200 million teens in Europe, Latin America and the Pacific Rim countries of Asia along with 40 million in USA and Canada. There are; -21% of US is 14 years and under -25% in China -33% in India -37% in Philippines -29% in Brazil -27% in Argentina Many youth around the globe have a strong interest in US culture and lifestyle and their hunger for Americana is being fed by their access to satellite tv and the net. Music, movie and sports are universal language for young people. Celebrates with global appeal appear in ads targeting youth. Pepsi (Britney Spears), Tiger Woods, Micheal Jordan (Nike) The most important characteristic of young consumers globally is the sense of collectivist values have been the norm. Although there are similarities of global youth, cultural differences still exist from one country to another.

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Role of advertising in bringing about changes in culture, customs and traditions Impact of advertising on attitudes, behaviour, societal norms, perceptions, needs life styles.
A characteristics of human culture is that change occurs. Reading a 20 year old magazine can see that peoples habits, tastes, styles, behaviour and values are not constant but continuously changing. However, this gradual cultural growth does not occur without some resistance. New ideas, methods and products are held to be suspect before they are accepted even if they are right. The degree of resistance to the new pattern varied. In some cases new ideas are accepted completely and rapidly and in others, resistance is so strong that the acceptance if never forthcoming. Concern is often expressed over the impact of advertising on society, particularly on values and lifestyles. While a number of factors influence the cultural values, lifestyles and behaviour of a society, the overwhelming amount of advertising and its prevalence in the mass media lead many critics to argue that advertising plays a major role in influencing and transmitting social values. Rapid industrialisation has change many long honoured attitudes regarding time and the position of women. Today instant food other time saving devices all support a changing attitude. Although a variety of innovations have been accepted there are many that face resistance. India has been engaged in intensive population control programmes for many years but the progress has been limited. Most attribute this to the low level of education and beliefs. The high birth rate is due to early marriage. Religions emphasis of bearing a son, the dependence on children for security in old age. All these are important cultural values are in variance with the concept of birth control. The introductions of the I pill and the 72 hour pill to stop pregnancy are gaining popularity. The institutions of family, religion and education have grown noticeably weaker over each generation. Many feel traditional authority is lessening and advertising has become a kind of social social guide. It provides ideas about style, morality and behaviour. Ads establish what is cool in society, ads show whites, blacks and kids from different social strata, dancing together. Ads show gays. Ads on pizzas McDonalds fast foods, jeans etc have definitely has influenced our food habits, dress and our life but this has taken place only at the superficial level and mostly in the metros and bigger town and cities. Recent years have seen a lot of changes in our cultural base. This has been the result of the opening up of the channels of communications and exposures of other cultures. The educated class has grown and some transformation was achieved without any change in the entrenched social cultural structure. The life style of many have changed. Expensisve cars, gadgets, designer clothes and five star living was adopted due to the ad bombardment. The economic liberalization have altered the lives of the middle class too. They have become more international in their outlook and aspiration, more sophisticated and liberal in the lifestyle and attitude and certainly more adventurous and demanding of holiday and leisure activity Now almost every consumer durable can be had on instalment and loans. The credit card industry has mushroomed to more than a Rs 2000 crore business. Consumer giant companies spend more than Rs 600 crores in advertising. The explosion of satellite tv brought home the consumer message with more than 100 channels. The impact if such exposure in terms of a desired life style cannot be overestimated The core cultural values in India has still the cultural values of ethics and the social sensitivity of the olden days in spite of the vast changes that have taken place in the behavioural patterns of the Indian people. The pressure of modernity is not strong enough to force a qualitative change in our cultural values.

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Web pages
Our world is ever changing. In todays day and age, on of the most important ways of communication and one of the most important elements of the mass media are Web pages. It is a new and innovative way to get in touch with the world outside. It is a step forward in the direction of complete globalization. It basically is a symbol of increased global unity. The web brings every continent closer together Regarding the increased global unity, it is true that many different kinds of information are now available on the web and for those who wish to know other societies, their cultures and people, it becomes easier. When one travels to a foreign country or a remote town, some information about the place can be found. The web is available to individuals outside mass media. In order to publish a web page, one does not have to go through a publisher or other media institution and potential readers could be found in all corners of the globe. The WWW can be a great place to accomplish research on many topics. But putting documents or pages on the web is easy, cheap or free, unregulated and unmonitored. The great wealth that the net has brought to so much of society is the ability for people to express themselves, find one another, exchange ideas, discover possible peers worldwide they never would have otherwise met and through hypertext links in web pages, suggest so many other peoples ideas and personalities to anyone who comes and clicks. Most pages found in general search engines for the web are self-published or published by business small and large with motives to get you to buy something or believe in a point of view. The web is about making information available. Making web pages accessible is actually pretty easy once one is aware of the common elements that affect how they are displayed. A webpage is a page of the www is a hypertext system that operates over the Internet. Types of web pages 1. informative pages 2. personal web pages 3. political/interest group web pages 4. marketing oriented web pages 5. entertainment pages There are various types of web pages and all of these cater to the different needs of different audiences and consumers. Web pages are need specific. They offer something for everyone. Web pages which are marketing oriented or which are product specific are now a new wave in the media business. These web pages are not just read. They are used - web sites fuel the imagination - people interact with the information - visitors interact with the brand - communication is two way- from brand to visitor and vice versa - it is not a monologue. There is actual conversation with the visitor - web pages help the user familiarize the visitor with the brand - it is the only media where you can actually buy through advertising eg you can book tickets purchase products go into details also the increased opportunity to individuals is certainly observable in the countless personal pages as well as other groups such as families, small shops, which are not aming those who publish materials. The emergence of free web hosting services are perhaps an important factor in bringing this possibility into reality. The alternative media expanded into the web as well.

12 Web pages are used as a tool for democracy. But this is misused. The web has uncensored material or content in it which could be viewed by children or adults and this leads to corruption of the power of freedom vested in the individuals using the net and giving out information on the net Web pages for premium brands are also extremely helpful. - they make the consumers appreciate the uniqueness of the product - they help the users be up to date - this helps the product make their brand image and their prices clear Most individuals visit a web site with some specific goal in mind; - most requested information will be foung - recent updates will be available - the web has dynamic elements that change with time - there is some sort of structured navigation - web pages have a sort of clarity and simplicity to them. Hierarchy of the net. - at first you have the net as a whole, as a medium of communication to mass audiences - the net consists of search engines, eg google, alta vista etc - these search engines help us find web sites - these web sites are made up of web pages Characteristics of web pages -It is the only form of media wherein other media are also available. Local newspapers, government publications and other materials are available on the net and therefore easier to access and so a variety of information obtainable with the same effort. -Web pages are a revolution in the thought process of the media. It is here that any type of in formation can be published. Web pages are not checked for accuracy. Some sites and pages may be used to express the personal opinion of certain individual on some issues which may not necessarily be facts. We find both supporting and countering arguments to web pages. -by using search engines the users can locate specific web pages in accordance to their needs -the net is a great tool for research, but finding quality web material and using it to your advantage is a challenge. -web pages are completely interactive sources of information in the media. It is a two way communication. Information is not just given out but the user can question and give in his own inputs as and when he pleases -web pages have a hierarchical structure, it is very different from the structures that newspapers or magazines may follow. The in formation in this case is divided into chapters, sections and sub sections making it easier for the consumers to find exactly what they are looking for. Drawbacks of web pages - the actual purpose of the internet may not be articulated clearly - it may be difficult to separate advertising form the actual and accurate information - some marketing sites may offer misleading information in order to sell their products - it does not have a far and wide reach as tv because illiterates, the lower class or the lower middle class may not have access to computers and even if they do they may not know how to operate them - old people may not be computer savy - the credibility is compromised - the site creator may not be easily identified - research may be difficult due to various reasons as a website may contain mounds of info but the user may not be able to tap into these sources All in all the net and its components are an interactive medium for finding information and asking questions. It is definitely a step towards global unity. The media is a new tool of communication and has had a great impact on the lives of many individuals including students and professionals

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Internet marketing
Internet is a world wide system of computer network so that one person can access information available within seconds from all over the world on his computer screen. The nit also makes it possible for one computer to communicate with anyone in the world. World wide web www as this is commonly referred to is almost synonymous with the net. It is actually the most widely used part of the net and is an interlinked connection of hypertext documents over the net, known as homepages. Communication rings is a sort of network that helps one person communicate or chat with another using two different PCs. This sends messages directly between individuals Bundling this is a pricing tactic that is both common and powerful. It is the combination of products into larger packages. It is simple in concept, it can have larger effects on competition and consumers. Online suppliers are aggressive users of bundling. Content trees are indirect, they use central gathering point, such as still respond to each other, but flow of information happens at the central point. The use of www as a marketing tool. - multimedia approach. What makes the web such an effective marketing tool is the fact that the files need not be simple text. The web offers a cost-effective opportunity to represent oneself using colour pictures, film clips and sound. instant global coverage. The internet puts all big and small companies on equal footing and thus gives the smaller companies a considerable competitive advantage by moving to a global market from a simply a local one. Public relations PR activities are possible over the net and this gives the company increased exposure - direct sales the web page should be built so that it can accept data entry to allow customers to order goods and services directly form the website. Today credit card payments, cash on delivery is also being allowed to increase sales - marketing research the web page allows for online customer surveys. While this may not allow statistically sound random sampling methods, it does provide rapid feedback - improved customer targeting one of the main uses of the web is browsing and gathering purchase related information. The web provides a highly targeted and self-selecting audience, unlike more traditional forms of media personalisation Customers want a product or service that best matches their needs. The web can serve as the matchmaker that discovers and delivers personal information and individualised products. Personalization is a special form of product differentiation. It transforms a standard product or Service into a specialize solution for an individual - new product development companies are able to achieve new ways of doing product development by relying on a few essential ideas flexibility modularity and feedback. Flexibility allows the new product process to respond effectively to rapidly changing market conditions. Modularity allows work to proceed in parallel . Finally improved communication and feedback from early users can lead to higher quality in formation from customers much earlier than has been possible in the past/

14 www as a marketing tool 1. to establish a presence. There are more than 900 million people world wide who have access to the web, They cannot be ignored. 2. to network. To make connections with other people, with millions of potential clients and partners telling Them what the company does and how they can be reached, 24 hours a day, inexpensively and simply on the www 3. to make business information available 4. to serve the customer 5. to heighten public interest 6. to relese time sensitive material 7. to sell things 8. to make pictures, sound and film files available 9. to reach a highly desirable demographic market 10. to answer frequently asked questions 11. to stay in contact with salesperson 12 to open international market 13 to create a 24 hours service 14 to make changing information available quickly 15 to allow feedback from customers 16 to test market new services and products 17 to reach media 18 to reach the education and youth market 19 to reach the specialized market 20 to serve the local market

Online marketing strategy Step one: create your overall theme to your online business You cannot develop a business around a single product. Even if you are promoting a single p Product upfront, it is not the product that people want. They want benefits they receive out of the product. When designing the site, think about an ultimate benefit to build your site Ultimate benefits are what your prospects are really seeking. So do not base your busine just on products but on benefits. This will be the theme that binds everything else to the site and make people return to the site over and over again. Step two: develop a unique aspect, the USP, something that brings a uniqueness to the brand. An Unique selling proposition will make the brand stand out from the crowd online. Everyone is Selling books online but Amazon.com has become the most well known. They developed the Usp worlds largest bookstore which is what they are Step three: build relationship with the prospects. Credibility online is a major issue because there are many fly by night, get rich operators on the net. Develop credibility by an overall strategy to include such tools as message boards, schats, conference calls, dealer programmes step four: traffic generation is probably the most important aspect of running an online business. No matter how well designed the website is, how great and powerful the sales letter is, people cannot buy if they do not know of the existence of the site. People can visit the site if they are made to click on the ads that are created on the net. They

Can be made to come back to the site by the creation of more banners and placing them on Sites that are used most by the target audience 15

Global Advertising International advertising


Consumers and business markets in N America, western Europe and Japan have begun to show signs of slower growth and companies realized the need to look to other markets for the growth. Consumers in the rapidly developing markets in Asia and other emerging markets are showing a voracious appetite for branded goods reflecting changing social aspirations. This has led to the need to create global brands . The growth of global media has led both to the increasing homogenization of consumer tastes across the world and to the use of standardized or global advertising campaign which can be seen simultaneously in many different countries. With the growth of satellite and cable TV channels across the world, global brands such as Nike and Cannon have begun to strengthen their global brands through the use of standardized global campaigns. The advantage enjoyed by companies that operate with a global strategy is that they can enjoy operating economies of scale. This means having larger volumes of the same product manufactured and sold over a larger market, this companies can market them at a lower cost per unit Counteracting the policy of global advertising is the reality that consumers in every country are still different from each other , with different habits, tastes and preferences, so a product that works in one country may not work in another. Americans like to drink orange juice for breakfast , French consumers do not. Middle Easterners prefer toothpaste that tastes spicy, this taste may not work in other markets. McDonalds has to vary its menu in different countries serving beer in Germany, wine in France and milkshakes flavoured with local fruits in Singapore Stories of disastrous mistakes made by advertisers who failed to understand local consumer differences can be found in numerous books on advertising such as Pepsodent trying to use a teeth-whitening appeals in parts of Asia where dark-stained teeth were considered prestigious. A multinational advertiser must understand the cultural nuances of a local market in order to be successful because it may differ substantially from the culture of the home market. Consumers have different expectations concerning colours used in packaging ( purple is a death colour in Brazil, whereas white is the colour for funerals in HongKong) . Brands may need different positioning strategies across many markets. Cultures differ in the ways in which they construe and communicate meaning of the ad. A strategy of localizing the ad message but is necessary. It is true that the world is moving toward greater cultural convergence and it is also true that with political and customs barriers crumbling, with television channels like MTV and CNN and STAR TV being bounced off satellites into homes across the globe, with more people travelling and vacationing in other countries and with fast food franchises appearing at street corners from Beijing to Buenos Aries it often appears that we are indeed all moving toward one homogenized global community. Teenagers, the world over, are more exposed than most to cultural influences from other countries through fashions, music, clothing, food, personal appearance and sports. Teenagers are less likely to be parochial and nationalistic and more likely to identify with pan-national organisations. Women the world over are seeking more actively to participate in workplace success and identify less closely than before with the traditional female roles of mother/nurturer/wife and homemaker. It may seem paradoxical that as consumer preferences are supposedly becoming homogenized, consumers are also supposedly becoming more differentiated in their wants and needs Advertisers need to reconcile these divergent trends. (give points from making messages culture specific to show how cultural differences exists) ( give the example of how Nescafe dealt with the advertising of coffee internationally) Advertising thus has to both standardise and to localise given the many differences that exist across countries, cultures and markets. Ad campaigns for food and beverage products are often the hardest to standardise and it is easier to standardise campaigns across western markets than across western and

eastern markets. It is easier to standardize on the core positioning platform for the brand while allowing for local variations in other brand elements. Thus Oil of Olay uses the same positioning- a moisturizing 16 cream for mature women-even though the name, packaging, formulation can vary slightly across markets The solution is to modify products juist enough in local markets to make them strong in those local markets, but of maintain whatever uniformity is possible across multiple markets. This is often called glocalization or planning globally but acting locally There are many who see global advertising as impossible, given the many fifferences that exist across countries, cultures and markets. The issue is not one of whether an ad campaign can be completely globalized, but rather of the extent or degree to which a global brands campaign can be standardized across the world.

17

Cross Cultural Psychological Segmentation


Cross-cultural anthropologists talk about cross-cultural cohorts, groups of people who belong to different cultures or nationalities but nevertheless share common sets of needs, values and attitudes. No matter where they live, consumer groups such as new mothers, computer users, international business travellers, audiophiles, high-end photographers and so on represent groups with similar needs and wants, Because babies bottoms are the same everywhere, diapers such as Pampers can use the same marketing and advertising strategies worldwide. Global segments can be identified using psychographic research. Studies in Germany, UK and France reveal similarities and differences. All the three countries had four types, or segments of women labelled traditional homemaker contemporary homemaker appearance-conscious and spontaneous While the traditional homemaker accounted for 1/3rd the proportion of the other two varied dramatically. While a common ad strategy may be possible for these countries, the dramatic variations across countries it would be advisable to accommodate country-specific differences. Agencies have attempted to find common Euro-Consumer segments and found four lifestyle groups common across western Europe- successful Idealists, affluent materialists, comfortable belongers and disaffected strivers Other researchers put 95% of the population into one of the five global segments. 1. Strivers 26% in US, France and Spain; young, success-seeking, leading time-pressured lives. Materialistic, pleasure-oriented, seek instant gratification and convenience. 2. Achievers 22% in US and high in Spain. Slightly older, already successful, affluent. Opinionleaders, status conscious. Seek to buy quality. 3. Pressured 13% US mostly women facing financial or familial pressure. Highly stressed 4. Adapters 18% US, higher in Germany. Older, with somewhat traditional values but open-minded, Living comfortably in their golden years 5. Traditionals. 16% US, conservative, prefer to stick to the familiar and established in their personal Lives and their consumption patterns. There are many other very interesting differences and patterns both within and across countries. In Japan, for instance, there appear to be major differences in value-orientation between men and women, and between the older and the younger consumers. Men believe more in traditional family roles than women and the younger are more materialistic and consumption-oriented. Many Japanese and American women work outside of the home (which enhances the need for many convenience and time saving products) Japanese women have been slower to embrace the liberated attitudes of their counter part in the US One has to treat Japanese and American women differently. We also have the VALS psychograhic segmentation where the population is grouped into 8 sections; Fulfilleds , Believers, Actualisers, Achievers, Strivers, Strugglers, experiencers and Makers. But humans are both deeply the same and obviously different. Underlying the similarities that exist between people, the external influences serve to differentiate them into distinct market segments Cultural differences are of great importance to advertisers. Values in peoples need to be uncovered to understand the motivations that drive both attitudes and behaviour. Many of the global psychological segmentation schemes are between five to seven or eight groupings of consumers, varying chiefly on the dimensions of income, desire for material success and social

acceptance and personal or social idealism. Each country has its rich, middle-class and poor those who live their lives keeping up withy the Joneses and those who are dreamers and rebels. Since human nature are essentially the same no matter where one lives.

18 The challenge facing a global advertiser is in not only knowing the global psychological segment to which the target consumer belongs but also the local differences that make that same consumer different in one country than in another; There is a need to focus on both simultaneously. An understanding of the similarities and differences that exists between nations is critical the foreign advertisers, who have to devise appropriate strategies to reach specific foreign markets. The greater the similarities between nations, the more feasible it is to use relatively similar strategies in each nation. Similarity in psychographics across countries creates similarities that do not exist. Several nationalities can speak the same language or have similar psychographics, race and heritage but that does not mean that similarities exist in other respects- that a product acceptable to one culture will be readily acceptable to the other or that a promotional message that succeeds in one country will succeed in the other. A common psychographics across countries does not guarantee a similar interpretation of word or phrases. An economically unified Europe does not mean a common set of consumer wants and needs. Cultural differences among the members of the EU are the product of centuries of history. The USA has many subcultures that even today defy complete homogenization

THE NEW ECONOMIC POLICIES The new economic policies were on two levels; 1 Liberalisation measures which was again under two sections, New Industrial Policy and New Trade Policy. 2. Macroeconomic reforms and structural adjustments I LIBERALISATION MEASURES
1.. New Industrial Policy (.NIP) Under the New Industrial Policy there was; a. Liberalisation of industrial licensing which resulted in -delicensing -decontrol -deregulation -broad banding -abolition of registration b. FERA liberalisation. The Foreign Exchange Regulation Act liberalised foreign investments and technology import c. MRTP liberalisation The Monopolies Restrictive Trade Practices was removed and threshold asset limit was abolished and clearance for expansions, mergers were not needed d. curtailment of public sector. Several industries hitherto reserved for public sector opened up to the private sector. Only eight core industries remain reserved for the public sector 2. New Trade Policy (NTP) Under this policy there were seven reforms as follows;; a. lowering of import tariffs b...import licences were abolished c. the exim regime was more open d. the rupee was made convertible e. exports were encouraged f. Indias economy was to be integrated with global economy
compiled by Anita Mandrekar

II
1

MACROECONOMIC REFORMS AND STRUCTURAL ADJUSTMENTS


Macroeconomic reforms under which there were three types of reforms: a. fiscal and monetary reforms which included -reduction of fiscal deficits -reform of tax systems -interest rate reforms -inflation control b. banking sector reforms included the following -banks to operate as commercial institutions -priority sector lending to be phased out -deposit interest rates deregulation -operational freedom in lending rates -norms on capital adequacy to be kept up -disinvestment in public sector banks -permission for new private sector banks c. capital market reforms were; -abolition of CCI (controller of capital issues) -strengthening of SEBI (securities and exchange board of India; -opening of Indian capital markets of FII (foreign institutional investors) -allowing foreign brokers in Indian capital markets -private sectors allowed into mutual funds -allowing Indian firms to raise capital abroad

2.

Structural adjustments were a. market driven price and dismantling of price controls -phasing out of subsidies -dismantling price controls -abolishing fertiliser, sugar, export and petro-product subsidy -partial decontrol & parallel marketing of kerosene and LPG - steel price decontrol b public sector restructuring and disinvestment -no new public sector units or expansion with government equity -budgetary support for PSU to be phased out -disinvestment of government equity in PSUs c. exit policy -support to VRS -creation of NRF

Compiled by Anita Mandrekar

Effect of policy changes/liberalisation on the Economy


-The protection enjoyed by existing company disappears. New companies could enter any given industry and get a market share. The existing companies had to compete for their share. -The concept of minimum economic size was shaken. Many existing companies became uneconomic. Companies earlier had to conform to the licence given and the size had to be as per the licence. Licence for larger capacity was normally not given. Now going big became the order of the day. Economic size now meant international size. Companies that could not become big either sold to the bigger firms or merged with others HLL tookover Tomco and many other mergers, acquisitions took place. -The industry structure also changed with the entry of multinationals. With their high investment capacity and technology clout, the multinationals are altering the structure in almost all the industries they are entering. Eg in the refrigerator industry there were only four players. Today we have Whirlpool, Samsung, Daewoo LG Siemens-Bosch and many more. The new entrants altered the structure of the industry, market size, market shares, differentiation, brand positions and the nature of competition -The entry of multinationals also resulted in brand war in which the multinationals are squeezing out the desi brands. It means a grossly unequal battle for Indian brands The MNCs brought in superior technologies and more modern products. They brought in their global brands to the Indian market along with their full marketing and management might. The opening up of exports also became available through the parent companys expertise and connections. The power structure in Jointstock Ventures are in favour of the multinational due to their majority stake. The Indian company has to surrender and also forego their managerial autonomy. The MNC brands have affected the Indian brands in several ways Loss of volumes and market share Squeeze on profit margin Need to allocate more funds beyond the capacity of the Indian firm Losing the race finally to the foreign brand It is overall an unequal battle between players of unequal strength as Indian firms are weak in four areas, Lack of technology clout Capital inadequacy Lack of economy of scale Lack of product clout and brand power .
Compiled-Anita Mandrekar

Product packaging for international markets


The packaging component includes style, features, labelling, trademarks, brand name, quality, price and all aspects of a products package. Packaging components frequently require both discretionary and mandatory changes. Some countries require labels to be printed in more than one language while others forbid the use of any foreign language. Elements in the packaging component may incorporate symbols, which convey an unintended meaning and thus must be changed One companys red circle trademark was popular in some countries but was rejected in parts of Asia where it brought up images of the Japanese flag. Yellow flowers used in another company trademark were rejected in Mexico where a yellow flower symbolized death or disrespect. Package size and price have an important relationship in poor countries. Companies find they have to put the product in small packs to bring the price within the spending norms. Unilever makes its Sunsilk brand shampoo affordable in India by packaging in sachet packs Care must be taken to ensure that corporate trademarks and other parts of packaging component do not have unacceptable symbolic meaning. Particular attention must be given to translations of brand names and colours used in the packaging. When Ford tried to sell its Pinto automobile in Brazil, it quickly found that the cars name translated to tiny male genitals. White is the colour of purity in western countries but in the eastern world it is the colour of mourning. In China P&G packaged diapers in a pink wrapper. The Chinese shunned the pink package. The Chinese do want anyone to thinkhey have a girl; they prefer the male child. There are countless reasons why a company may have to adapt its packaging. In some countries law stipulates specific packaging and measuring units. Words like jumbo pack, giant pack may be illegal. High humidity and the need for long shelf life (because of long extended distribution system) may need extra heavy packaging for some products. The Japanese attitude about quality includes the packaging of a product. A poor packaged product conveys an impression of poor quality to a Japanese Again in Japan, Lever sells Lux soap in stylish boxes because in Japan more than half of all soap cakes are purchased during the two gift giving seasons. Soft drinks are sold in smaller size to accommodate the smaller Japanese hand. Labelling laws vary from country to country. In Saudi Arabia product names must be specific. Hot Chilli will not do; it must be spiced hot chilli. Coca Cola had problems in Brazil with its Diet Coke. Brazillian law interprets diet to have medicinal qualities and under the law producers must give daily recommended consumption on the label of all medicine. Coke had to get special approval to get around this restriction. The expensive labelling to meet Chinese market entry cost prohibitive. Marketing managers must examine each element of the packaging component be certain that the packaging of the product convey the appropriate meaning and value to a new market. Otherwise they may find themselves the USA soft drink company which had six-pointed stars as decoration in its package labels. Weak sales revealed that Arabs interpreted the stars as pro-Israel sentiments Special packaging and marketing requirements must be considered for shipment destined to be transported over water. Packaging for domestic markets often falls short for goods subject to extreme climates or unprotected outdoor storage. Protection against rough handling, moisture and pilferage may require heavy crating which increases total packaging costs as well as freight rates.
Compiled by Anita Mandrekar

All countries regulate the marking of goods and containers on on imports and non-compliance can result in severe penalties From the consumer side it is seen that consumers see far more than a container of label. They are buying a personality, an attitude perhaps even a set of beliefs. A majority of consumers transferred the sensation from the container to its content. The look of the packaging has an enormous impact on how product quality will be. Colour is one of the most potent tool in packaging. Studies of eye movement have shown that colours trigger the fastest response of any element of a package. lt is felt that yellow is the most noticeable hue but for some products yellow had negative connotation. Feminine forms, circles and ovals suggest completeness, receptiveness and enclosure and provides the underlying theme for many packages because these have the most positive associations. But to work well it must be inflicted with some other symbol. The success or failure of packaging abroad depends on an awareness of the fundamental differences in cultures. Understanding of cultural values of colour, shapes, symbols of the various countries is necessary. Thus - packaging is a silent seller - it attracts consumers - it should ensure good sealing - should maintain quality for long time shelf life - keep transportation in mind - should be cost effective - should be environmentally friendly and biodegradable - colours should be carefully chosen - information on packaging should be as prescribed by the legal authorities - should be tamperproof - should be of international standards. Meanings and significance of colours across various countries. Red West Japan danger danger anger anger China Brazil joy anger festivity hate Nigeria danger evil sunshine brightness wealth purity calm peace evil Korea danger anger wealth Middle East danger-evil happiness prosperity fertility strength

yellow cowardice happiness honour money caution nobility royalty wealth green sex future youth hope greed energy growth wealth safety youth white purity death mourning purity virtue mourning humility peace blue machismo villany strenght happiness masculinity cold power black death evil evil death

nature peace freshness innocence purity purity mourning cool protection freshness evil evil darkness mystery

compiled- Anita Mandrekar

Advertising and Popular Culture


Popular culture refers to beliefs and practices and the objects through which they are organised that are widely shared amongst a population. Popular culture is what we make out of the products and practices of mass produced culture. It is the expressive content that is produced and consumed. It is light entertainment that is delivered through the channels of mass media and finally absorbed voluntarily, to be interpreted by the individual who receives it. Information then goes back in the form of ratings or sales figure that will influence the subsequent round of offerings. To Popular culture is everything from common culture to folk culture to mass culture. Popular culture consists of symbols; Instances of popular culture are television serials, films, comic books, music etc. Popular culture gives pleasurable sensations upon reception. This pleasure giving feature is a central aspect of the popular culture experience. Advertising on the other hand refers to the paid for messages that attempts to transfer symbols into commodities to increase the possibilities of its purchase. For this reason advertising may be looked at warily. Although advertising comes in many forms, television, radio and magazines are normally focused more. Some see advertising as a subset of first order intentions. It is developed with both first order and second order intentions. The first order is when communication occurs. The second orders intentions are of purchasing the advertised goods. Advertising aims at changing behaviour while popular culture aims to give pleasure and not to change viewers Advertising is almost always briefer than instances of popular culture (30 sec of a commercial against 30 minutes of popular culture) Media and space is expensive and advertisers have to work within budgets However advertising and popular culture share much in common. Both are products of culture industries. Both are to be understood as artistic products. Both pay great attention to style. Both share the use of same mass media method. Popular culture is more welcome than advertising Advertising and popular culture have come to occupy central positions with a global economic growth. Both are approached as economic entities as well as symbolic entities.
Compiled by Anita Mandrekar

Popular culture offers lavish store to advertisers who try to create attractive messages for consumers. Advertisers will appropriate popular culture material as celebrities, music, comedy styles and anything else that can be used as accepted and enhanced symbol for their products. To communicate with consumers, advertisers thus have a fertile an ample mixture of symbolic material to draw upon. The lore of popular culture that advertisers find usable are comedies, music and celebrities. Music has the ability to stimulate extraordinary emotional feelings. Adult consumers derive emotional benefit from popular music. It is this appeal that advertisers try to exploit to stimulate consumers interest in their products. An advertisers choice of leading entertainers as spokespeople, as opposed to lesser known individuals, carries with it valuable contextual inferences when the transfer of meanings from the endorser to the product and from the performance to the ad works well, it becomes a success. The utility of music is acknowledged within the advertising industry. Background music can set up a mood with targeted consumers and lend an emotional dimension to a brand. Although much of the music in advertising is original an increasing proportion of it consists of reused popular cultural hits. Advertising is not depleting or obliterating popular culture. The interpenetration of advertising and popular culture is recognised. Highlights from one adds lustre to the other. The target audience are always on the lookout for symbols and meanings which reverberate back and forth between the two domains. Popular culture can even aid in the creation of new norms. To communicate with consumers, advertisers have an ample stock of purchasable symbolic material to draw upon. Advertisers turn to popular culture that if pleasurable, emotional and non-coercive. Popular culture is the seed belt of the stars who can command general recognition from a diverse population. The stars are likely to deliver the emotional material the spectator is looking for; The popular song Dhoom Machale became a part of the day to day lingo of youngsters. Advertisers use Dhoom Macha Diya below their visual have reported increase in sales. Although cultures meet most new ness with some resistance or refection, that can be overcome. Cultures are dynamic and change occurs when resistance slowly yields to acceptance radually there comes an awareness of the need for change, ideas once too complex become less so because of the cultural gains in understanding. Once the need is recognised, the acceptance cannot be prevented. Possible methods and insights are offered by social scientists that are concerned with concepts of planned social change. .
Compiled by Anita Mandrekar

The role of advertising in the Indian Economy


More of the people from the richest to the poor will participate in the worlds wealth through global trading. The emerging global economy will bring us into world wide competition with significant advantages for both marketers and consumers. With satellite communications and global companies consumers are demanding an ever expanding variety of goods. Indian economy had been constrained and shaped by policies of import substitution and an aversion to free trader. Real competition was eliminated through import ban and prohibitive tariffs an foreign competition. Industry was so completely regarded that those with proper license would count on a specific share of the market. Now however times have changed and India has embarked on a transformation Indian economy grew dramatically and is among the Big Emerging Markets. It has a large middle class about more than 300 million (the size of USA). Among them are college graduates, 40% with degree in science and engineering. India has a diverse industrial base and is developing as a center for computer software. These advantages give Indias reform programmes enormous potential. India has a weak infrastructure but the Indian government plans to address these deficiencies. The private sector has been allowed entry into power generation, oil and gas exploration, telecommunication and civil aviation. An estimate 100 to 300 million Indian posses sufficient disposable income to form an expanding consumer class As India is developing, incomes change, expectations for a better life adjust to higher standards and social capital investments are made, market behaviour changes and eventually groups of consumers with common tastes and needs arise With the rise of incomes, new demand is generated at all income levels for everything from soap to automobiles. The poorest slums in Kolkata are home to 1,00,000 TVS and video facilities More household money goes for food in emerging markets than in developed markets then the next category of expenditure is for appliances and other durables. The role of advertising Establishing a brand image in emerging markets is an important strategy. Intense competition and increasing sophistication has led to a need for more sophistication in advertising strategies. Advertisers have to function at the highest creative level. Of course boundaries are placed on creativity by legal, language, culture, media, product and cost limitations. Sales promotion efforts are used to supplement advertising and personal selling.; This is to stimulate consumer purchases and improve retailer effectiveness and co-operation Local ad agencies have expanded as the demand for advertising services by MNCs have grown Liberalisation policies of the Indian government have resulted in changes in life styles, changes in needs and wants of consumers. The bargaining power of consumers, of suppliers, threat of new entrants with substitute products and jockeying among players in the market can be witnessed today. Breaking up of market segments , products and brand launches, niche marketing and positioning are some of the strategies widely used by Indian advertisers.

Compiled by Anita Mandrekar

The rural market has opened up new vistas for advertisers selling consumer products. Tetra packs, sachets, synthetic bottles have had a revolutionary impact on packaging aspects , leisure and luxury products have thrown open new markets. ( health, beauty parlours, credit cards etc.) Brands are vying with one another to obtain a favourable perception of consumers. Advertisers are trying to create brand personalities entity which consumers can emotionally associate themselves. Advertisers are depicting products with new psychological perspectives, wrist watches, designer wear, two wheelers, chocolates and now the Nano, are being given a symbolic orientation by advertisers. The social benefits of the increased advertising are; The increase in employment which in turn generated income and results in the per capita income. More product innovation take place. Society is better informed and has a wider and wiser choice. The awareness level increases. Social activists instil a civic sense and competition ensures better quality products. This leads to higher standard of living. Advertising supports 60% of media costs It can be concluded the effects of advertising upon society, come in mixed forms, depending on the purpose and execution of various campaigns. However, society as we know it is based very heavily upon advertising, and the negative social and economic impact are not serious enough to outweigh the many positive social and economic effects on our society. No one can predict what new forms advertising will take in the future. However the rapidly increasing cost of acquiring new customers makes one thing certain. Advertisers will seek to hold onto the current customers by forming closer relationships with them and by tailoring products, services and advertising messages to meet their individual needs. So while advertising will continue to encourage people to consume, it will also help provide them with products and services which are more likely to satisfy their needs. The field of advertising contributes different benefits to different fields of activities and to different segments of the market, To consumers ads provide basic communication to inform them about products. Ads motivate consumers by various appeals. The welfare role of ads is also important Ads generate an increase of sales, help build brands, enhance the institutional image and help the growth of the economy The social responsibility of advertising has increased. It sustains the media. The role of advertising can broadly said to be -distribution role -employer role -life style enhancing role -consumer choice provider role -consumer welfare role -price reducer role through increase in demand and providing economies of scale
Compiled by Anita Mandrekar

Changes in Lifestyle and Buying Habits


There are significant changes in lifestyles and buying habits of Indian consumers. Convenience foods and ready-to-eat foods are now popular. Modern gadgets have gained entry into most homes. Teenagers are also becoming influencers of change in their familys buying patterns. The average Indian is now spending money more liberally than before. The middle class constitutes the largest segment of consumers for manufactured goods in the country. A virtual explosion has been taking place in the Indian middle class. It is now placed at around 300 million people. It is now emerging as the consumption community of the country. They are better educated and exposed to global lifestyles, and their aspirations are constantly growing and their spending is steadily on the increase. This change is not confined to the metros and other big cities. There is now product penetration even in smaller towns. Even in rural areas penetration is reasonably good; The top end of the middle class is now aspiring for a second car, a second TV and a second refrigerator. Consumer credit is gaining ground. On the whole the Indian consumer is in the grip of big change. The well -off segments are becoming more cosmopolitan inj work-culture, food habits, entertainment and lifestyle in general. A fusion of the east and west seems to be taking place. The internationalisation of the upper middle class society is on. The Indian middle class has long been a security seeking class. This class has been moving towards more material comforts, The change in the dress habits is a new trend. There is a shift from the tailor-stitched garments to ready-mades and that too branded ones. Travel is now becoming very popular. People are now travelling to see places and for relaxation and not just to see relatives. The middle class has become status conscious or prestige conscious. The changing fashion of college going children are on the rise. The middle class woman is no longer confined to the four walls of the kitchen. She is now educated and also employed, she is the image builder. The new found purchasing power has fuelled the demand for cosmetics, toiletries, packaged foods and beverages. Consumers are now quality conscious as well as cost conscious The middle class also seeks leisure. Time saving devices are popular. Sense of grooming is a strong motive force behind several purchases The younger generation is fast becoming more international in style. They are more modern and adventurous than their elders and are quick in adapting to fashions. The new middle class is -confident, full of energy and drive and is making things happen - the centre of the socio-economic upheaval now taking place -the fastest growing segment in the Indian society -street smart, pragmatic, non-ideological, and result oriented -demonstrating that there is a way up from the bottom to the top -is seizing key slots in the global information and media industries -open to a lot of opportunities
Compiled by Anita Mandrekar

Social implications of advertising


The central issues of advertising and society can be divided into three categories. The first is nature and content of the advertising to which people are exposed. Is advertising inherently unethical:? Are appeals used to manipulate consumers against their will? Is advertising too repetitious? Is it too preoccupied with sex? There is also the questions about the fairness of advertising to children+ The second category represents the aggregate effects on society as a whole. It refers to the sescondary consequences or effects. What is the effect on societys values and lifestyles? Some believe that advertising competes with or dominates such other socialization agents as literature, plays, music, the home and the school. That it fosters materialism at the expense of other basic values. That it may serve to reinforce racial discrimination or that it promotes harmful products. The third category is the effect advertising has on societys economic well-being and the efficiency of the operation of the economic system. Can the power of advertising lead to the control of the market by a few firms, which will weaken competition and raise consumer prices? Is alcohol and cigarette advertising ethical. These advertising are now banned in India. A much wider range of ethical issues and concerns are now being addressed as packaging, professional services ads by physicians, attorneys, accountants and emerging social issues about environmental or green marketing. There is considerable overlap between what many consider to be ethical issues and the issues of manipulation, taste and advertisings effects on values and lifestyles Does advertising manipulate? The essence of a free marketplace and a free society is the freedom to make decisions to select or not select a particular brand. Some feel this freedom is overpowered by advertising which can manipulate a buyer into making a decision against his or her will. When advertising utilizes appeals that go beyond a basic communication the charge of manipulation via emotional appeals is raised. The implication is that with emotional appeals the consumers will make less than optimal decisions. A typical theme running through these commercials is to hold the brand out as the pathway to success and happiness and the antidote to what is otherwise a drab, boring or lonely life. Dishwashing liquids are advertised as sweeping away the dullness of life. Bath soaps have rejuvenating capacity and so on. These observations are related to issues of deception. There is also a general claim that advertisers have the raw power to manipulate consumers by their capacity to generate large numbers of ad exposures and highly sophisticated scientific techniques to make ads effective. However the fact remains that consumer choice behaviour is determined by many factors in addition to advertising- the advice of friends, decisions and lifestyles of family members news stories, prices and so on. Advertising is but one of many variables and it has a limited role. Some feel that advertising is objectionable because the4 creative effort behind is not in good taste. Some feel that television advertising is often like a visitor who ahs overstayed his welcome

Advertising to children has been a major focus and concern for many years. It is said that children between 2 to 11 spend about 25 hours a week watching television and see approx20,000 ads per year/ Ads presumably have and effect on what people buy and on their activities. It has an impact on the values and lifestyles of society and that this impact has its negative as well as positive side. It is stated that appeals to mass markets tend to promote conformity appeals to status promote envy, pride and social competitiveness appeals to fears promote anziety appeals to newness promote disrespect for tradition, durability, experience, appeals to youth promote reduced family authority and appeals to sexuality promote promiscuity The key issues are which values and lifestyles are to be encouraged as healthy, which are to be avoided and what relative impact or influence ads have on them The environmental movement has thrown up a number of new issues about advertising and its effects on values and lifestyles. Advertising has played a valuable role to encourage recycling, energy conservation and many ecologically positive behaviours. It was informative and educative However advertisers have seized on environmental advertising claims as an effective way to sell their products and services by using terms such as recycled and recyclable
Compiled by Anita Mandrekar

Promotion in International Markets


,Sales promotion consists of those promotional activities other than advertising, personal selling and publicity. As such, any promotional activities that do not fall under advertising, personal selling and publicity of the promotional mix are considered sales promotion In markets where the consumer is hard to reach because of media limitations, the percentage of the promotional budget are increased. In some less developed countries sales promotions constitute the major portion of the promotional effort in rural and less accessible parts of the market. In parts of Latin America, a part of the advertising-sales budget for both Pepsi and Coco-cola is spent on carnival trucks, which make frequent trips to outlying villages to promote the brand. When the carnival van makes a stop in a village, it may show a movie or provide some other fkind of entertainment, the price of admission is an unopened bottle of the brand purchased from the local retailer. The unopened bottle is to be exchanged for a cold bottle plus a coupon for another bottles. This promotional effort tends to stimulate sales and encourages local retailers, who are given prior notice of the carnival trucks arrival, to stock the product. An effective promotional tool when the product concept is new or has a small market share is product sampling. Nestle Baby Foods faced such a problem in France in its attempt to gain share from Gerber, the brand leader. The company combined sampling with a novel sales promotion programme to gain brand recognition and to build goodwill. Most French take off for long vacation in summer, with the whole family piled up in the car and staying at well-maintained campgrounds, nestle provided rest0stops structures along the highway where parents would feed and change their babies. Sixty four hostesses at these rest stops welcome 1.20,000 babies visits and dispense 6,00,000 samples of baby food each year. There are free diapers , a changing table and high chairs for the babies to sit in while dining. When Kellogs expanded its business abroad, it had to enlighten consumers in South and Central America, Middle East and Asia about dry cereal and cold breakfast. To instil this new eating habit, Kellogs used samples and demonstrations in conjunction with a heavy advertising campaign A success of a promotion may depend on local adaptation. Responses to promotions can vary across promotional types and cultures. Major constraints are imposed by local laws, which may not permit premiums or free gifts to be given. Some countries laws control the amount of discount given at retail outlets and others require permits for all sales promotions. In one country no competitor is permitted to spend more on sales promotion than any other company selling the product. Sales promotion is not restricted to the stimulation of demand at the consumer level. It may be used to gain middlemens support as well. It is also not limited to consumer products. Pfizer attracts drug wholesalers by sponsoring trips and other events. Gifts are given to doctors and their wives are taken on shopping sprees Sales promotion is effective when a product is first introduced to a market. A Japanese firm created a great deal of excitement in Thailand by including game cards in its detergent boxes and consumers could not stop buying more and more in search of the winning cards.
Compiled by Anita Mandrekar

Premiums and Gifts European countries have a larger number of restrictions than USA for sales promotion. The legal requirements are so diverse that standardization of promotion regulations in Europe may be difficult. Belgium requires a government tax on window signs. Most countries in Europe have a limit on the value of the premium given. Colgate was sued by a local blade manufacturer in Greece for giving away razor blades with shaving cream,. Austria considered premiums to be a form of discriminatory treatment towards buyers. In France, it is illegal to offer premiums that are conditional on the purchase of another product. In Finland, premiums are allowed as long as the word free is not used with them. When Radio Shack duplicated its US strategy by giving away flashlights the firm found itself in violation of Germanys sales law regarding premiums and gifts. Germany and Scandinavia have strict laws concerning promotions to protect their consumers from being distracted from the true value of the brand. Argentina, Austria, Norway and Venezuela virtually ban the use of merchandise premiums Price Reductions, Discounts and Sales Austria prohibits cash reductions that give preferential treatment to different groups of customers Scandinavia discounts are prohibited In Germany authorities have to be notifies in advance when a sale is planned. It is allowed when a firm is going out of business or is giving up its product line; or end of winter or end of summer and a twenty-fifth anniversary Samples In Russia tobacco firms freely distribute samples. In USA alcoholic beer cannot be offered as a free sample Germany restricts door-to-door free samples that limit population coverage as well as the size of the sample pack Sweepstakes, Games and Comtests In France the entry form must be separate from the order form, for a sweepstake to be valid. Germany permits sweepstakes as long as they do not create psychological pressure on customers; it should not be misleading and should not offer a prize of substantial value. Lotteries are illegal in many countries eg France, England, USA. A sweepstakes, game or a contest to be valid must have only two of the following elements, chance, consideration or price.
Compiled by Anita Mandrekar

The Impact of Global Competition in the field of Advertising

The integration of western Europe and the opening up of the eastern European market and the crumbling of political, economic and customs barriers made it easier for companies to operate in a truly global manner. Consumers in the rapidly emerging markets of Asia and elsewhere are showing a voracious appetite for branded goods. This has led to the increased attention to the need to create global brands that can take advantage of such growing economies. N America, Europe and Japan realised the need to look for other markets for their growth. The growth of global media & satellite and cable-basedTV channels across the world has also led to increase in global/international advertising campaigns. There is no doubt that global marketing and advertising are becoming very important today because major companies and brands have begun to see the need to grow in countries outside their traditional domestic bases Advertising agencies themselves have begun to form global networks and alliances. This was because their global clients began to seek global servicing capabilities and also because they wished to gain a larger share of the fast growth in advertising revenue The advantage that global companies enjoy is operating economies of scale. This means that having larger volumes of the same product and sold over a larger market area can produce and market them at a lower cost per unit due to economies of scale. The globalisation has thus resulted in the rush of companies to market their products on a global scale. The competition of the various brands introduced by various firms along with the competition of local or domestic brand had a impact on the advertising world. Ad agencies began to form global networks and alliances. The increasing global clients began to seek global servicing capabilities and also because these agencies wished to gain a larger share of the fast growth in advertising revenue Advertisers realised that advertising campaigns that work in one market may not work in another. Consumers in every country are still somewhat differe4nt from each other, with different habits, tastes and preferences. Eg Americans like to drink orange juice for breakfast the French dont. In the Middle East most prefer toothpaste that tastes spicy; this taste may not work in other markets McDonalds has to vary its menu in different countries. Advertisers are aware of the disastrous mistakes made by agencies that failed to understand local consumer differences. Pepsodent was trying to a teeth whitening appeal in parts of Asia but failed because dark-stained teeth were considered prestigious A multinational advertiser must understand the cultural nuances of a local market inorder to be successful because it may differ substantially from the culture of the home market. Advertisers have to know about the government regulations and the media availability and distribution arrangements of the country where they have their campaign.. The competitive environment may vary dramatically. Agencies may also face brands that follow very different positioning strategies across many markets
Compiled by Anita Mandrekar

Controversial advertising
The controversy about many ads shows how our traditional conservative society is still trying to decide how much sexuality to allow in advertising. Indias growing economy and rapid internationalization are adding to the issue as they challenge Indias home-grown mores in new ways. The Ministry of Information and Broadcasting refers all complaints of ads that are controversial to the ASCI, Advertising Standards Council of India, which is the industrys self-regulatory body. Once the ad-industry council has issued its opinion, the ministry has the final say. The ASCI has taken action on ads that it thought went too far. Dark Temptation ad showed a woman taking bites out of a man who is coated in chocolate after using the chocolate flavoured deodorant. the Ministry of Information and Broadcastion stopped the from being broadcast after receiving a complaint from a viewer who found it offensive the shot of a woman biting the chocolate off a the mans bottom.The ASCI banned the ad and now the ad is shown without the woman biting off the chocolate Wild Stone, a deodorant ad shows a woman tricking her way into her brother-in-laws arms because of the effect his deodorant has on her. The brands tag line says barely legal. Another deo ad called Fuel for Men launched by Elder Health Care Ltd in alliance with VLCC Healthcare Ltd, shows a woman so attracted to a man using the product that she starts unbuttoning her blouse. The ASCI , after receiving a complaint contact the respective advertisers for their explanation before taking a decision to pull these ads off-air. These companies, however say they have not stepped out of line with the above commercials. They feel that there are certain category truths that are known to sell products like toothpaste results in clean teeth and shampoo in clean hair. Similarly, fragrances are associated with attraction and the above ads are based on that premise. The ad agency that created these ads also defended it. They argued that behavioural scientist have established that males groom themselves for the female species and that is exactly what the ad is reflecting. However, it may be that males groom themselves for the female species , the objection is the reaction of the female in the ads that is offensive. It is demeaning to women There are several ads on deodorants that have raised objections such as Fa Mens Xtreme and Zatak are also airing ads with sexual overtones. These ads gained ground after the campaign for the Axe deo ad. The Axe ad has been the only body spray to face scrutiny from the government even though competitors have run racy ads of their own. The Amul Macho underwear ad was another very controversial ad which was found very offensive. It showed a young woman comes to a river to wash her husbands clothes. She pulls pair of men bovver shorts from the laundry pile and begins to wash it, giving sultry looks to the camera and throwing her head back in a suggestive manner. The ad ends with a breathy female voice saying Amul Macho crafted for fantasies Pepsi ad was banned after human rights groups said it promoted child labour. It depicted a young Indian boy bringing drinks to the Indian national circket team. The ad was withdrawn. India is a signatory to the Convention on the Rights of the Child and is committed to putting an end to child labour in any form
Compiled by Anita Mandrekar

A cancer vaccine commercial seen on Indian television urge parents to get their young girls inoculated the vaccine Gardasil to protect against cervical cancer, the second most major cancer in women. What the ad hides is that it is mired in a controversy in the USA. It was launched in India in October 2008 with television ads. Advertising prescription on television is unethical enough, but using fear to sell them is worse. Gardasil is an efficient vaccine but the safety and risk information about it has not been available to parents. Anchor and Havells were involved in a hair raising controversy. Anchor electricals accused Havell of copying a concept for its hair raising television commercial and demanded that Havells take the campaign off the air. The Havell ad showed a boy whose everyday life is disrupted when his hair stands on end because he used a faulty switch at home. Anchor claimed the concept was taken from a previous television ad created for Anchor switches. Anchor wrote a letter to Havell to stop airing the ad. Havell said they had not received the letter. An insurance ad showing a father in a hospital carrying a new born baby girl saying hai to pyari magar boge hai bhari. The authorities in Delhi had the ad scrapped. . The makers of Complan moved the Mumbai High Court to stop the Horlicks from airing their Horlicks ad which said it had all the required 23 nutrients but was still Priced at Rs 128 against Rs 174 the price of Complan. The Mumbai High Court refused to grant any relief to the makers of Complan.
Compiled by Anita Mandrekar

Present day Economic Issues & Policies & their effects on Advertising

The present day economic policies changed from a regime of quantitative restriction to a more open price based market force determined system. The three pillars of the economic policy are; -liberalisation -privatisation -globalisation The entry of multinationals have come with new technology and market practices that lay more emphasize on advertising as an important tool As entrants increase, products and competition also increase and thus demand for advertising increased After the entry of cable television India has seen a blast of channels. The numbers of newspapers and magazines have also increased. Now there are new wayus of reaching the consumer. Due to the media explosion, there is accfess to foreign channels. Through these viewers are exposed to a materialistic western culture new products are and features are noticed in these programmes and that creates awareness and need to by the product. Dressing habits have changed, new trends are set in everyday life. All these small cultural changes are also the result of advertising. Advertising creates brands, association and draws aspirers into the western culture of material culture of material possessions Privatisation has also affected the world of advertising. Government organisations survive only because they are government owned. There is no profit motive and urge to sell. With privatisation there is a radical shift in the management system. It is moving towards modern managerial techniques and advertising. The volume of advertising and its creating capabilities have increased. With the opening up of the economy and integrating the economy with the world economy there was a vast impact on advertising industry. Restrictions on foreign entry, scrapping of FERA, massive import restrictions and reducing tariffs etc brought the world closer Advertisers had to think global and act local. Indian agencies came of age. Ads for global causes are also now a days being made in India. Through the global ventures, the advertising agencies collect social and cultural inputs and even story boards sometimes are made in India. Internet has become a great marketing tool. Advertising experience is on the increase with the increase in ad expenditure. At present, the Indian economy is experiencing the pressure of several economic issues such as unemployment, poverty, illiteracy, inflation.
Compiled by Anita Mandrekar

Growing influence of advertising and its criticism


Advertising by its very nature receives wide exposure. It presumably has an effect on what people buy and thus on their activities. The wide exposure and advertisers persuasive vehicle, it is argued, has its impact on the values and lifestyles of society and that this impact has its negative as well as positive side. It is argued that appeals to mass markets tend to promote conformity, appeals to status promote envy, pride and social competitiveness, appeals to fear promote anxiety, appeals to youth promote reduced family authority and appeals to sexuality promote promiscuity. The key issues are which values and lifestyles are to be encouraged as healthy, which are to be avoided and what relative impact or influence advertising has on them. It is interesting that the issues are hotly debated a the international level. Three issues have attracted particular attention: - the relationship of advertising to materialism - the role that advertising has played in creating harmful stereotypes of women and ethnic minorities - the possible contribution of advertising in promoting harmful products. Materialism is defined as the tendency to give undue importance to material interests and presumably there is a corresponding lessening of importance to non-material interests such as love, freedom and intellectual pursuits. In the world of television commercial all of lifes problems and difficulties, all of our individual yearnings, hopes and fears can yield instantly to a material solution and one which can work instantly without any effort skill or trouble on our part. Such a link is impossible to prove or disprove. It is true that advertising and the products advertised are a part of our culture and thus contribute to it in some way. It is also true that advertising does not have the power to dominate other forces (family, religion, literature etc) that contributes to the values of society. There is little support the view that advertising is a pervasive force in altering consumer spending and savings habits In a free society people can choose the degree to which they indulge their desires, needs and fantasies Promoting Stereotypes. The accusation that advertising has contributed to the role stereotyping of women and ethnic minorities has been supported by several studies. The ads reflected that women do not do important things, are dependent on men, are regarded by men as primarily as sex objects and should be at home. Minorities were in low status roles Advertisers are aware of these accusations and are sincerely trying to avoid such situations in their ads. The image of women in advertising has changed significantly in the last few years. Promoting harmful products. After many debates advertising of cigarettes and alcohol are now banned. Ofcourse arguments have been put forward that ads do not promote consumption, it is only geared toward brand choice. It is also argued that countries that have banned advertising of alcohol and cigarettes have lowered the consumption of these products. It is felt, therefore that banning such products may not be the most effective way of handling the problem
Compiled by Anita Mandrekar

Green Marketing has brought up a new issues about advertising its effect on values and life styles. Advertising has been a part of the Environmental Protection Agency. These ads have had many ecologically positive behaviour. However may corporations have begun using environment appeals in marketing regular products to sell their products and services. This so called green marketing has been challenged on a number of grounds. Authorities have attempted to establish voluntary guidelines on the use of the terms such as recycled and recyclable. Many products with environmental claims susch as shaving creams that contain no CFCs, laundry detergents that are biodegradable and disposable diapers that are degradable require special scrutiny because they are especially likely to confuse consumers. Advertising makes people buy things they do not need. Critics claim advertising merely increased demand for unnecessary products that are not really needed by consumers. The counter argument to this is who is to determine the need of a consumer? Advertisers try to convince people that their brand will make them sexier, healthier or more successful but they cant make them buy. If it is so easy to convince people to buy why do more products fail than succeed? Advertisings power has been greatly exaggerated. Another aspect of the manipulation argument is that advertising creates artificial needs. Consumers control the marketplace by the choices they make with their discretionary income. Advertising debases our language. Critics claim that advertising copy is too breezy, too informal and too casual and therefore improper. They believe that advertising has destroyed the dignity of the language. Research however has shown that people respond better to down-to-earth conversational language than to the dignified , formal copy. Good copywriters develop a style that is descriptive, colourful and picturesque as well as warm, human and personal. They use simple words that are lively, full of personality and reflects the language usage and patterns of their target audience Advertising is in bad taste. Taste is highly subjective. What is bad taste to some is perfectly acceptable to others. Also taste changes. What is offensive today may not be so tomorrow. People were first outraged when the first deodorant ad for underarms appeared. Today no one questions such ads. Today grooming and personal hygiene products often use near nudity in their ads. In international markets nudity in commercial is commonplace. Ultimately the market has the veto power- it can simply ignore material it considers offensive or in vbad taste Advertising is deceptive. Critics define deceptiveness not only as false and misleading statements but also as false impressions conveyed, whether intentional or not. For advertising to be effective, consumers must have confidence in it. So continued deception is self-defeating. Even puffery claiming to be best, or greatest or premier is sometimes believes and therefore deceptive. Numerous regulations determine what advertisers can and cannot do but they also allow a significant amount of leeway. Thats where ethics and social responsibility come into play. An advertiser can act unethically or socially irresponsibly and not break any laws.

Compiled by Anita Mandrekar

Social Marketing
Social marketing is the design, implementation and control of programmes seeking to increase the acceptability of a social idea, cause or practice in a target group. Social marketing is one of the promising new developments expected to increase the effectiveness of social change. Social marketing is a set of programmes calculated to influence - acceptability of social ideas - to play its role as an educator - the changes in public attitudes - the changes in the quality of life - the standard of living - the building of efficient economic and social institutions Social marketing seeks to influence social behaviour, not to benefit the marketer but to benefit the general public/target audience. Social marketing has been used in international health programmes especially in areas like heart diseases, organ donations, prevention of alcohol and drug abuse. Social marketing is a tool to improve society. Advertising exerts a powerful influence on society. It has the ability to shape social trends and mould personal attitudes. In addition to the economic benefits of improved competition, lower price and more product choices, advertising promotes freedom of speech, supports the media and promotes information of social issues. It helps in the awareness of social problems. Social responsibility is closely related to advertising ethics, Social responsibility issues are complex. The advertising industry has an important say in how the public view social issues eg the aids scare has caused advertisers to tone down the use of sexual images in their ads. Environmental concern s are inducing advertisers around the world to be more socially responsible. Chevron advertised how the company delayed a gas pipeline project to avoid upsetting the mating season of the local grouse. Wall Mart advertised a green campaign highlighting merchandise that is environmentally friendly Social marketing is needed for the general public to create an awareness of certain issues that they are ignorant of and thus bring about a desired level of social awareness and thereby a social change. The principles of social marketing for non-profit oranisation are the same as those for profit organisations - key markets and audience must be identified - segmentation has to be utilised - consumer behaviour has to be studied - market positioning has to be planned - results have to be monitered - corrective measures have to be taken if needed The people should believe that a specific change will give more advantage than disadvantage. In order to be effective the social marketing programme should be based on extensive research on - the problem to be solved - the target audience or the population which suffers the problem - the message - the channels to be used The specific goal has to be determined. The creation of awareness is the main step in social marketing
Compiled by Anita Mandrekar

Social marketing shares the main components of general marketing process in the form of product, price, promotion and place. In this case the product is not physical in nature. It refers to a change in the behaviour or support required for the programme. eg anti-smoking, family planning. Its strategy popularises the positive ideas and encourages favourable behavioural changes in social values and individual values. Price here refers to the effort that is put into the behavioural change. It is what the consumer should do to obtain the product. The place refers to where the target audience are located at the time of the campaign. Promotion . the person or the institution associated with the social marketing should use advertising, sales promotion or direct response marketing to promote the campaign Some campaigns cannot be carried out without institutional partnerships eg health organisation, social welfare units, academic units etc Since social marketing is associated with the community in general, political and government patronage is required to make it a success. It makes marketing easier and effective in the long run. Social marketing aims at providing mental guidelines for future behaviour. Benefits of Social Marketing - is needed to promote the desired pattern of behaviour in a society - to promote health and hygiene among the public ( polio drops etc) - to promote awareness among the illiterate section - to promote sustainable development - to promote ecological consciousness - to promote social emancipation like women empowerment, ban on female infanticide, dowry, sati, Social marketing is the need of the hour
Compiled by Anita Mandrekar

The Scope and Challenges of International Advertising Scope


Never before have business, large and small, been so deeply involved in and affected by international business. A global economic boom, unprecedented in modern history, has underway as the drive for efficiency, productivity and open unregulated market sweeps the world. Powerful economic, technological, industrial political and demographic are converging to build the foundation of a new global economic order on which the structure of a one-world will be built. The world is mesmerised by information technology boom. International advertising is affected by all these things. Now more than ever one cannot escape the effects of the ever-increasing number of firms exporting, importing, and manufacturing abroad. Of all the events and trends affecting international business and therefore affecting international advertising there are four which stand out as dynamic - the rapid growth of World Trade Organisation and regional free trade areas like NAFTA and EU - the trend towards thre acceptance of the free market system among developing countries in Latin America, Asia and Eastern Europe - burgeoning impact of the Internet and other global media on the dissolution of national borders, - the mandate to properly manage the resources and global environment for the generation to come. Today most business activities are global in scope. Technology, capital investment, production ands marketing, distribution and communications all have global dimension. Every business, including advertising must be prepaid to compete in an increasingly interdependent global economic and physical environment. The globalisation of the worlds market and the growth of emerging markets cannot be ignored. Being international is no longer a luxury but a necessity.

Challenges of International Advertising Cultural Diversity


Culture is pervasive in all marketing and advertising activites, International advertisers need to operate at the highest creative level. For successful advertising one has to have a deep understanding of the local culture. It is a challenge to understand cultural similarities and differences and create a strategy to fit the particular needs one has to develop a sensitivity to cultural dynamics. It is imperative for international advertisers to appreciate the intricacies of cultures different from their own if they are to be effective in a foreign market. Eg in India, Domino Pizza stresses its fast delivery to differentiate itself from its competitors. In Britain, customers dont like the idea of home delivery. In Japan, houses are not numbered sequentially, so finding an address becomes difficult. In Iceland many dont have phones. Pillsbury marketed canned sweet corn because it felt that sweet corn would not require any flavour changes across international markets. But to its surprise, adjustments had to be made, not in its flavour but how it had to be positioned. The French add it to salad and eat it cold; In UK, it is a sandwich filler and pasta topping. In Japan, children have it as an after school snack. In Korea, it is sprinkled on ice cream.
Compiled by Anita Mandrekar

Advertising in the European Common Market is not easy as one would think. Childrens clothes are not popular in France where children are dressed as small adults. In Southern Europe, form-fitting clothes sell well but not in Netherlands where they loose clothing/ Cultural factors largely determine the way various phenomena are perceived. If the perceptual framework is different, perception of the message itself differs Existing perceptions based on tradition and heritages are often hard to overcome. In additions to concerns with differences among nations, advertisers find subcultures within a country require attention as well. In HongKong there are ten different patterns of breakfast eating. Besides these differences, there is the problem of changing traditions. In all countries, people of all ages, urban or rural, cling to their heritage to a certain degree but are willing to change some areas of behaviour. All differences have to be taken into account when advertising internationally. The point is that culture matters. Advertisers must appreciate the influence of political economy on social institutions and cultural values and ways of thinking. The position of men and women in society, the family, social class, group behaviour, how societies define decency and civility are interpreted differently within every culture. Advertisers must have an understanding of the influence of religion otherwise ads can offend consumers deeply. Legal considerations. Different countries have different advertising laws that need to be accepted and followed. Therefore while creating advertisements it is very important to know the laws that are imposed in that country. Laws that control comparative advertising vary from country to country in Europe. In Germany, it is illegal to use any comparative terminology .Belgium and Luxembourg explicitly ban comparative advertising, where as in UK , Ireland, Spain and Portugal it is allowed. Advertising on television is strictly controlled in many. In Kuwait the government-controlled Tv network allowed only 30 minutes of advertising per day, in the evening. Now it is a little more than 30 minutes. Some countries have special taxes that apply on advertising. It is very important for the advertisers to identify this and act accordingly. Media Limitations In international advertising, an advertiser must consider the availability, cost , coverage and the appropriateness of the media. There are also media effectiveness varies across cultures. Imagine the ingenuity required of advertisers confronted with a situation, where eg in Brazil tv commercial s are sandwiched together in a string of 10 to 50 commercials within one break. in Japan there are only 5 national daily newspapers and conditions are necessary to buy advertising space. Asahi, Japans largest newspaper, is known to turn down a million dollars worth of advertising a month of ad revenues Language limitations Language is one of the major barriers to effective communication . The problem involves different languages of different countries, or different languages or dialects within one country and the subtler problem of linguistic nuance and vernacular. Incautious handling of language has created problems in nearly every country. In Spanish-speaking countries one has to be careful of words that have different meanings in different countries. The word ball translates in Spanish as bola. Bola means ball in one country, revolution in another, a lie or fabrication in another and in yet another country it is an obscenity.
Compiled by Anita Mandrekar

Language translation encounters innumerable barriers that impede effective, idiomatic translation and this comes in the way of communication Everyday words have different meanings in different countries. Even pronounciations cause problems. Wrigley had trouble selling its spearmint gum in Germany until it changed the spelling to Speermint. Low literacy in many countries impedes communication and calls for greater creativity and use of verbal media. Even a tiny country like Switzerland had four languages, Advertising copywriters should be concerned less with obvious differences between languages and more with the idiomatic meanings expressed. It is not just sufficient to translate; it is necessary to interpret. Without a culturally correct interpretation of a countrys aesthetic values, a lot of advertising problems can arise. Interpretive knowledge requires a degree of insight that may be described as feeling. It is a kind of knowledge that depends on past experience for interpretation and is prone to misinterpretation if ones home country frame of reference is used. The Japanese, for example revere the crane as being very lucky because it is said to be lucky, however the number 4 should be avoided completely because 4 stands for death. Teacups are sold in fives and not fours, In understanding different cultures metaphors is a key doorway to success It is a mistake to discount myths, beliefs, superstitions or any other cultural beliefs Cultural elements must be evaluated in the light of how they might how they might affect a proposed advertising campaign Successful international advertising begins with cultural sensitivity
Compiled by Anita Mandrekar

Current Global Trends


Developing markets all over the world are experiencing rapid industrialization, creating growing industrial and consumer markets, economic growth and new opportunities for foreign investment. In China, few days before the New Year, the foreign outlets are jammed with bargain hunters pushing carts loaded high with food, kitchen appliances and clothing; the shoppers here are Chinas noveau rich. Mega stores have opened in a number of Chinese stores. The China market may be difficult to tap and may not be profitable for short term business firms as they are learning about the ways and tastes of the east which is so different from the west. Extended families are spending money on kids, a common form of conspicuous consumption in the developing world. Even in China, the spending power of youth is not to be discounted. China and other emerging markets throughout the world will account for 75% of the worlds total growth. The transition from socialists to market driven economies, the liberalization of trade and investment policies in developing countries, the transfer of public sector enterprises and the rapid development of regional market alliances are changing the4 way countries, will increase trade and prosperity. Decades ago larger parts of the developing world were hostile toward foreign investment and imposed severe regulatory barriers to foreign trade. Today it is different with the collapse of the Marxist-socialist economic setup and the spectacular success of Taiwan, South Korea, Singapore and other Asian countries. It has become apparent that the path to prosperity was open direct investment. China, Taiwan, Hong Kong, South Korea, Poland, Argentina, Brazil, Mexico and India are some of the countries undergoing impressive changes in their economies and emerging as vast markets. In these countries, there is ever expanding and changing demand for goods and services, markets are dynamic developing entities and are reflecting the changing life style of a culture. A pattern of economic growth and global trade is emerging. It consists of three multinational market regions that comprise major trading blocks- Europe, America and Asia. Indonesia, Malaysia, Thailand and the Philippines are beginning to follow. These are the trading blocks of the future. The wave of change that has been washing away restricted trade controlled economies, closed markets and hostility to foreign investments in most developing countries has also reached India. India has now the look and feel of the next China, but it continues to have problems. While it has overthrown the restrictions, it is not moving towards reforms and open markets with the same degree and vigour found in other emerging markets. Resistance to change comes from bureaucrats, farmers, union members as well as some industrialists who have lived behind protective barriers that excluded competition. India is second in size only to China and both contain enormous low-cost labour. India has a large industrial base and is developing as a center for computer software. These give Indias reforms enormous potential. Indias weak infrastructure makes many aspects of doing business difficult and costly but Indian government is addressing these problems. Private sectors have entry to power generation, oil and gas exploration, telecommunications, civil aviation, cellular phones etc India still presents a difficult environment. Widespread corruption and a deeply ingrained system of bribery make every transaction complicated and expensive. This corruption is persuasive, systematic, Structured running from the bottom to top of the political order. Trade is well over other developing countries and India has the capacity to be one of the more prosperous nations of Asia.

Social Marketing

Social marketing is a set of programmes calculated to influence - acceptability of social ideas - its role as an educator - the changes in public attitudes - the changes in the quality of life - the standard of living - the building of efficient economic and social institutions Social marketing seeks to influence social behaviour, not to benefit the marketer but to benefit the general public/target audience. Social marketing has been used in international health programmes especially in areas like heart diseases, organ donations, prevention of alcohol and drug abuse. Social marketing is a tool to improve society. Advertising exerts a powerful influence on society. It has the ability to shape social trends and mould personal attitudes. In addition to the economic benefits of improved competition, lower price and more product choices, advertising promotes freedom of speech, supports the media and promotes information of social issues. It helps in the awareness of social problems. Social responsibility is closely related to advertising ethics, Social responsibility issues are complex. The advertising industry has an important say in how the public view social issues eg the aids scare has caused advertisers to tone down the use of sexual images in their ads. Environmental concern s are inducing advertisers around the world to be more socially responsible. Chevron advertised how the company delayed a gas pipeline project to avoid upsetting the mating season of the local grouse. Wall Mart advertised a green campaign highlighting merchandise that is environmentally friendly Social marketing is needed for the general public to create an awareness of certain issues that they are ignorant of and thus bring about a desired level of social awareness and thereby a social change. The principles of social marketing for non-profit oranisation are the same as those for profit organisations - key markets and audience must be identified - segmentation has to be utilised - consumer behaviour has to be studied - market positioning has to be planned - results have to be monitered - corrective measures have to be taken if needed T The people should believe that a specific change will give more advantage than disadvantage. In order to be effective the social marketing programme should be based on extensive research on - the problem to be solved - the target audience or the population which suffers the problem - the message - the channels to be used The specific goal has to be determined. The creation of awareness is the main step in social marketing Social marketing shares the main components of general marketing process in the form of product, price, promotion and place. In this case the product is not physical in nature. It refers to a change in the behaviour or support required for the programme. eg anti-smoking, family planning. Its strategy popularises the positive ideas and encourages favourable behavioural changes in social values and individual values. Price here refers to the effort that is put into the behavioural change. It is what the consumer should do to obtain the product. The place refers to where the target audience are located at the time of the campaign. Promotion . the person or the institution associated with the social marketing should use advertising, sales promotion or direct response marketing to promote the campaign

Some campaigns cannot be carried out without institutional partnerships eg health organisation, social welfare units, academic units etc Since social marketing is associated with the community in general, political and government patronage is required to make it a success. It makes marketing easier and effective in the long run. Social marketing aims at providing mental guidelines for future behaviour. Benefits of Social Marketing - is needed to promote the desired pattern of behaviour in a society - to promote health and hygiene among the public ( polio drops etc) - to promote awareness among the illiterate section - to promote sustainable development - to promote ecological consciousness - to promote social emancipation like women empowerment, ban on female infanticide, dowry, sati, Social marketing is the need of the hour

Compiled by Anita Mandrekar

Important Note: Select any two countries from the four (4) groups. Two countries cannot be selected from One (1) group: Group I USA, UK, WESTERN EUROPE. Group II CHINA, JAPAN, KOREA. Group III BRAZIL, RUSSIA, EAST EUROPEAN COUNTRY. Group IV MIDDLE EAST (INCLUDING UAE). Emphasis should be on culture, language (verbal & non-verbal), educational level, economic status and the four (4) Hofsted Dimension.